Business reorganisation: accumulated losses and unabsorbed depreciation transfer to successor company, subject to compliance conditions. Where business reorganisation results in a firm or proprietary concern being succeeded by a company meeting the succession conditions, the predecessor's accumulated loss and unabsorbed depreciation shall be deemed to be the loss or allowance for depreciation of the successor company for the previous year in which reorganisation is effected, with set off and carry forward provisions applying; non compliance with proviso conditions to succession clauses causes earlier set-offs to be treated as the company's income in the year of non compliance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Business reorganisation: accumulated losses and unabsorbed depreciation transfer to successor company, subject to compliance conditions.
Where business reorganisation results in a firm or proprietary concern being succeeded by a company meeting the succession conditions, the predecessor's accumulated loss and unabsorbed depreciation shall be deemed to be the loss or allowance for depreciation of the successor company for the previous year in which reorganisation is effected, with set off and carry forward provisions applying; non compliance with proviso conditions to succession clauses causes earlier set-offs to be treated as the company's income in the year of non compliance.
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